DoD Awards $22.1M for DCGS-MC System Support, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $22,125,750 ($22.1M)
Contractor: DLH, LLC
Awarding Agency: Department of Defense
Start Date: 2019-04-26
End Date: 2020-01-31
Contract Duration: 280 days
Daily Burn Rate: $79.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROVIDE FULL DCGS-MC SYSTEM-OF-SYSTEMS (SOS) LIFECYCLE SUPPORT TO SSC ATLANTIC, TO INCLUDE DEVELOPMENTAL, FUNCTIONAL, AND OPERATIONAL TESTING, QUALITY ASSURANCE (QA) AND QUALITY CONTROL (QC), INFORMATION ASSURANCE (IA), AS WELL AS, CONFIGURATION MANAGEMENT (CM) OF SCALABLE, SECURE, INTEROPERABLE, SUSTAINABLE, AND SURVIVABLE C5ISR, INFORMATION OPERATIONS (IO), AND ENTERPRISE INFORMATION SERVICES (EIS) CAPABILITIES.
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405
Plain-Language Summary
Department of Defense obligated $22.1 million to DLH, LLC for work described as: PROVIDE FULL DCGS-MC SYSTEM-OF-SYSTEMS (SOS) LIFECYCLE SUPPORT TO SSC ATLANTIC, TO INCLUDE DEVELOPMENTAL, FUNCTIONAL, AND OPERATIONAL TESTING, QUALITY ASSURANCE (QA) AND QUALITY CONTROL (QC), INFORMATION ASSURANCE (IA), AS WELL AS, CONFIGURATION MANAGEMENT (CM) OF SCALABLE, SECUR… Key points: 1. The contract focuses on comprehensive lifecycle support for C5ISR and related capabilities. 2. DLH, LLC secured the award under full and open competition. 3. The contract's cost-plus-fixed-fee structure warrants scrutiny regarding cost control. 4. The short performance period (280 days) may limit long-term strategic value.
Value Assessment
Rating: questionable
The $22.1M award for 280 days of support, at a Cost Plus Fixed Fee (CPFF) structure, suggests potential for cost overruns. Benchmarking against similar complex system support contracts is difficult without detailed scope breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation. However, the CPFF pricing structure may not incentivize the most aggressive cost discovery from the contractor.
Taxpayer Impact: Taxpayer funds are being used for critical defense system support, with the CPFF structure posing a risk of exceeding budgeted amounts if not closely managed.
Public Impact
Ensures continued operational readiness for critical C5ISR capabilities. Supports the development, testing, and maintenance of complex defense information systems. Impacts personnel relying on these systems for intelligence and operational tasks. Contributes to the overall cybersecurity posture of the Defense Department.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Short contract duration
- Limited detail on specific deliverables
Positive Signals
- Full and open competition
- Focus on critical defense systems
Sector Analysis
This contract falls within Engineering Services, supporting complex C5ISR and Information Operations capabilities. Benchmarks for similar lifecycle support contracts vary widely based on system complexity and duration, but CPFF structures often require rigorous oversight to ensure value.
Small Business Impact
The contract was awarded to DLH, LLC, a large business. There is no indication of small business subcontracting goals or participation in this specific award, suggesting limited direct benefit to the small business sector.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides oversight for contract performance and financial accountability. However, the CPFF structure necessitates proactive and detailed monitoring to ensure cost efficiency.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee pricing model
- Short contract performance period
- Lack of detailed performance metrics provided
- Potential for cost overruns
- Limited visibility into small business participation
Tags
engineering-services, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.1 million to DLH, LLC. PROVIDE FULL DCGS-MC SYSTEM-OF-SYSTEMS (SOS) LIFECYCLE SUPPORT TO SSC ATLANTIC, TO INCLUDE DEVELOPMENTAL, FUNCTIONAL, AND OPERATIONAL TESTING, QUALITY ASSURANCE (QA) AND QUALITY CONTROL (QC), INFORMATION ASSURANCE (IA), AS WELL AS, CONFIGURATION MANAGEMENT (CM) OF SCALABLE, SECURE, INTEROPERABLE, SUSTAINABLE, AND SURVIVABLE C5ISR, INFORMATION OPERATIONS (IO), AND ENTERPRISE INFORMATION SERVICES (EIS) CAPABILITIES.
Who is the contractor on this award?
The obligated recipient is DLH, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $22.1 million.
What is the period of performance?
Start: 2019-04-26. End: 2020-01-31.
What is the projected cost efficiency of this CPFF contract given the short duration and complexity of the systems supported?
The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility for evolving requirements, inherently carries a risk of cost overruns if not meticulously managed. The short 280-day duration for a system-of-systems lifecycle support contract suggests a potentially high burn rate. Without detailed breakdowns of labor categories, overhead rates, and profit margins, it's challenging to definitively assess cost efficiency. However, the inherent nature of CPFF necessitates robust government oversight to ensure the fixed fee remains justified and costs are controlled.
How does the limited contract duration impact the long-term strategic value and sustainability of the supported C5ISR capabilities?
The short 280-day duration raises concerns about the long-term strategic value and sustainability of the DCGS-MC System-of-Systems (SOS) lifecycle support. While it may address immediate needs, it potentially disrupts continuity for complex system development, testing, and maintenance. This short timeframe could lead to fragmented efforts, hinder knowledge transfer, and necessitate frequent re-competition, increasing administrative burden and potentially impacting the stability and evolution of critical C5ISR capabilities.
What specific metrics are in place to measure the quality and effectiveness of the developmental, functional, and operational testing performed under this contract?
The provided data does not specify the metrics used to measure the quality and effectiveness of testing. Effective oversight would require clearly defined Key Performance Indicators (KPIs) and objective quality assurance measures tied to the successful execution of developmental, functional, and operational testing. These metrics should align with established DoD standards for C5ISR systems to ensure interoperability, security, and survivability, and their absence or vagueness represents a potential oversight gap.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523618R3163
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: DLH Holdings Corp
Address: 6720B ROCKLEDGE DR STE 777, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $24,933,488
Exercised Options: $24,933,488
Current Obligation: $22,125,750
Actual Outlays: $1,071,388
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D7736
IDV Type: IDC
Timeline
Start Date: 2019-04-26
Current End Date: 2020-01-31
Potential End Date: 2024-01-31 00:00:00
Last Modified: 2025-11-07
More Contracts from DLH, LLC
- OHS Monitoring Support Services — $180.0M (Department of the Interior)
- Nhlbi Service Desk, Configuration Management, and Infrastructure Operations and Maintenance — $97.1M (Department of Health and Human Services)
- NIH Oiit IT Services With Grsi — $60.4M (Department of Health and Human Services)
- OIT Support Services — $52.3M (Department of Health and Human Services)
- Igf:ct:igf Desktop Management and User Support Services — $52.2M (Department of the Interior)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)